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Describe utilization of a risk-adjusted discount rate

Describe how utilizing a risk-adjusted discount rate develop capital budgeting decision making compared to utilizing a single discount rate for all projects?
The risk-adjusted discount rate develop capital budgeting decision making compared to the single discount rate approach since the RADR lets us to set a higher hurdle for the high risk project and a lower hurdle for the low risk project therefore aligning our capital budgeting decision making procedure more closely with the goal of maximizing the value of the firm.

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